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Kline Corporation acquired additional land and a building that included several pieces of equipment, for $600,000. The acquisition was settled as follows: cash, $120,000; issuance of Kline's common shares, $120,000; and signing of a long-term note, $360,000. An appraiser estimated the market values to be $200,000 for the land, $500,000 for the building, and $100,000 for the equipment. Indicate the accounts affected and the amount of this acquisition on the accounting equation. (Enter any decreases to account balances with a minus sign.)

Kline Corporation acquired additional land and a building that included several pieces of equipment, for $600,000. The acquisition was settled as follows: cash, $120,000; issuance of Kline's common shares, $120,000; and signing of a long-term note, $360,000. An appraiser estimated the market values to be $200,000 for the land, $500,000 for the building, and $100,000 for the equipment. Indicate the accounts affected and the amount of this acquisition on the accounting equation. (Enter any decreases to account balances with a minus sign.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Kline Corporation acquired additional land and a building that included several pieces of equipment, for $600,000. The acquisition was settled as follows: cash, $120,000; issuance of Kline's common shares, $120,000; and signing of a long-term note, $360,000. An appraiser estimated the market values to be $200,000 for the land, $500,000 for the building, and $100,000 for the equipment. Indicate the accounts affected and the amount of this acquisition on the accounting equation. (Enter any decreases to account balances with a minus sign.)
Transcribed Image Text:Kline Corporation acquired additional land and a building that included several pieces of equipment, for $600,000. The acquisition was settled as follows: cash, $120,000; issuance of Kline's common shares, $120,000; and signing of a long-term note, $360,000. An appraiser estimated the market values to be $200,000 for the land, $500,000 for the building, and $100,000 for the equipment. Indicate the accounts affected and the amount of this acquisition on the accounting equation. (Enter any decreases to account balances with a minus sign.)
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